Victor EzejaThe Chairman Of United Bank for Africa and Heirs Holdings, Tony Elumelu, has charged the Federal Government and security operatives to tell Nigerians those behind oil theft, which has over the years kept crude production below output target.
The billionaire business and founder of the Tony Elumelu Foundation stated this in an interview published In Financial Times.
Join our WhatsApp ChannelHe said Nigeria’s inability to meet OPEC production quota is due to oil theft.
According to him, crude oil theft has been a major obstacle to Nigeria’s quest to scale up production not low investment in the sector.
He said: “The reason Nigeria is unable to meet its OPEC production quota is not because of low investment but because of theft, pure and simple!
“Meanwhile, oil-producing countries are smiling as their foreign reserves are rising. What is Nigeria’s problem? We need to hold our leaders more accountable.”
Speaking further in the interview, Elumelu said the oil thieves still steal 18 per cent of the crude from his field.
“42,000 barrels of crude pumped out daily. Theft still takes away about 18 per cent of production,” he stated.
The billionaire investor said he discovered why international oil companies (IOCS) are divesting from onshore oil assets after criminal gangs stole crude from his pipelines.
When asked who is behind the theft, he responded, “This is oil theft, we’re not talking about stealing a bottle of coke you can put in your pocket. The government should know, they should tell us. Look at America — Donald Trump was shot at and quickly they knew the background of who shot him. Our security agencies should tell us who is stealing our oil. You bring vessels to our territorial waters and we don’t know?”
Nigeria has been grappling with oil theft which has stagnated oil production for many years.
The Nigeria National Petroleum Company has been giving weekly updates on its efforts in collaboration with security agencies to curb the menace of oil theft in crude oil producing communities.
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The national oil company said that between 27th July and 2nd August 2024, 151 cases of crude oil theft were reported by several incident sources. In a video aired on national television, NNPCL said 18 illegal connections were discovered in several locations in Bayelsa, Rivers, Delta and Imo states. It also said 49 illegal refineries were destroyed in Bayelsa, Rivers and Delta states; vandalism of hydrocarbon infrastructure reported in Rivers, Delta and Abia states in the past week, while three cases of oil spill due to activities of vandals were reported in Delta, and Rivers states.
Elumelu’s comment about activities in the Nigeria’s oil and gas sector comes at a time the 650,000 barrels per day Dangote Refinery is grappling with crude oil supply challenge.
The refinery’s management has repeatedly lamented about inability to get crude supplies from local producers.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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